A crowd of about 100 people attended today's pit bull rally. (Photo by WBAL's Robert Lang)

The Maryland House of Delegates has given its preliminary approval to a package of tax and spending bills, hours after the bills received final approval in the Senate.

A final House vote is expected Wednesday, which is expected to be the last day of a special session called by Governor Martin O'Malley.

The House will hold its session at 10 a.m. to hold its final debate and vote.

Delegates spent about three hours debating and rejecting various amendments to the bills, including a proposal by Montgomery County Democrat Charles Barkley to replace the income tax increase with a sales tax increase.

Barkley had argued the income tax increase for individuals earning above $100,000 and households earning above $150,000, disproportionally impacts his county, which is the state's wealthiest. He also argued raising the sales tax rate from 6% to 7% would generate more money for the state.

The Senate gave its final approval earlier in the day by a vote of 27-19.

The bill also reduces some income tax exemptions for these taxpayers.

The bill also increases the taxes on most cigars and smokeless tobacco.

It also closes the loophole that allows small business owners to transfer money to a trust, to avoid paying income taxes.

Montgomery County Democrat Richard Madaleno told WBAL News that the loophole also exists at the federal level. He said he was not sure how much money closing the loophole would bring the state.

"Over time there were estimates of $20-million to potentially zero, because people won't use this mechanism if they feel there is no value in it,"Madaleno told WBAL News.

The Senate vote was largely along party lines, with Republicans voting against the bill, and most Democrats voting in favor of it.

Seven Democrats joined the 12 Senate Republicans in voting against the bill.

The Senate also voted 33-13 to approve a series of spending transfers, that includes shifting the cost of teacher pensions from the state to county governments over a four year period.

Governor Martin O'Malley called the special session to avert about $500 million in cuts triggered by a "doomsday budget" that was triggered when lawmakers failed to pass a package of legislation during the regular 90-day session last month.

Pit bull owners and their advocates held a rally today to urge lawmakers to pass a bill to reverse the impact of a Maryland Court of Appeals decision that defined pit bulls as a dangerous breed of dogs, and holds their owners and landlords automatically responsible for any damages or injuries caused by the dogs.

There are four separate versions of the legislation introduced in the House of Delegates.

A bill has also been introduced in the Senate.

The advocates say the court decision will lead pit bull owners to abandon their dogs, and landlords to evict owners of pit bulls, and the issue cannot wait until lawmakers return to their regular session in January.

Baltimore County Democratic Delegate Jon Cardin is sponsoring one of the House bills.

"This is an issue that is non-controversial, non-partisan. It is something for the interest of all Marylanders," Cardin told WBAL News.

Legislative leaders say the bills will not be considered in this week's special session, noting the focus of the session remains budget and tax issues.

One House source told WBAL News that there is the possibility the defendants in the Court of Appeals case will ask the Court to reconsider, and the legislature should wait until that issue is resolved.

The bills have been referred to the House and Senate Rules Committees, and legislative leaders expect them to remain there without a vote.

Roll Call Votes

By a vote of 27-19, the Senate approved State and Local Revenue and Financing Act of 2012 (Senate Bill 1302). This is the bill that includes the increase in income and tobacco taxes

27 Democrats voted "yes"

7 Democrats an 12 Republicans vote "No"

1 Democrat was absent

Voting Yes

Benson, Joanne C. (D), District 24

Conway, Joan Carter (D), District 43

Currie, Ulysses (D), District 25

DeGrange, James E., Sr. (D), District 32

Ferguson, William C., IV (D), District 46

Forehand, Jennie M. (D), District 17

Frosh, Brian E. (D), District 16

Garagiola, Robert J. (D), District 15

Gladden, Lisa A. (D), District 41

Jones-Rodwell, Verna L. (D), District 44

Kasemeyer, Edward J. (D), District 12

Kelley, Delores G. (D), District 10

King, Nancy J. (D), District 39

Madaleno, Richard S., Jr. (D), District 18

Manno, Roger (D), District 19

McFadden, Nathaniel J. (D), District 45

Middleton, Thomas M. (D), District 28

Miller, Thomas V. Mike, Jr. (D), Senate President, District 27

Montgomery, Karen S. (D), District 14

Peters, Douglas J. J. (D), District 23

Pinsky, Paul G. (D), District 22

Pugh, Catherine E. (D), District 40

Ramirez, Victor R. (D), District 47

Raskin, Jamin B. (Jamie) (D), District 20

Robey, James N. (D), District 13

Rosapepe, James C. (D), District 21

Young, Ronald N. (D), District 3

Voting No

Astle, John C. (D), District 30

Brinkley, David R. (R), District 4

Brochin, James (D), District 42

Colburn, Richard F. (R), District 37

Dyson, Roy P. (D), District 29

Edwards, George C. (R), District 1

Getty, Joseph M. (R), District 5

Glassman, Barry (R), District 35

Jacobs, Nancy (R), District 34

Jennings, J. B. (R), District 7

Kittleman, Allan H. (R), District 9

Mathias, James N., Jr. (D), District 38

Muse, C. Anthony (D), District 26

Pipkin, E. J. (R), District 36

Reilly, Edward R. (R), District 33

Shank, Christopher B. (R), District 2

Simonaire, Bryan W. (R), District 31

Stone, Norman R., Jr. (D), District 6

Zirkin, Robert A. (Bobby) (D), District 11

Absent

Klausemeier, Kathy (D), District 8

By a vote of 33-13, the Senate approved the Budget Reconciliation and Financing Act of 2012 (Senate Bill 1301). This is a series of spending transfers including the shift of the cost of teacher pensions from state to county governments over four years.

32 Democrats and 1 Republican vote "yes"

11 Republicans and 2 Democrats vote "no"

1 Democrat was absent

Voting Yes

Astle, John C. (D), District 30

Benson, Joanne C. (D), District 24

Brochin, James (D), District 42

Conway, Joan Carter (D), District 43

Currie, Ulysses (D), District 25

DeGrange, James E., Sr. (D), District 32

Edwards, George C. (R), District 1

Ferguson, William C., IV (D), District 46

Forehand, Jennie M. (D), District 17

Garagiola, Robert J. (D), District 15

Gladden, Lisa A. (D), District 41

Jones-Rodwell, Verna L. (D), District 44

Kasemeyer, Edward J. (D), District 12

Kelley, Delores G. (D), District 10

King, Nancy J. (D), District 39

Madaleno, Richard S., Jr. (D), District 18

Manno, Roger (D), District 19

Mathias, James N., Jr. (D), District 38

McFadden, Nathaniel J. (D), District 45

Middleton, Thomas M. (D), District 28

Miller, Thomas V. Mike, Jr. (D), Senate President, District 27

Montgomery, Karen S. (D), District 14

Muse, C. Anthony (D), District 26

Peters, Douglas J. J. (D), District 23

Pinsky, Paul G. (D), District 22

Pugh, Catherine E. (D), District 40

Ramirez, Victor R. (D), District 47

Raskin, Jamin B. (Jamie) (D), District 20

Robey, James N. (D), District 13

Rosapepe, James C. (D), District 21

Stone, Norman R., Jr. (D), District 6

Young, Ronald N. (D), District 3

Zirkin, Robert A. (Bobby). (D), District 11

Voting No

Brinkley, David R. (R), District 4

Colburn, Richard F. (R), District 37

Dyson, Roy P. (D), District 29

Frosh, Brian E. (D), District 16

Getty, Joseph M. (R), District 5

Glassman, Barry (R), District 35

Jacobs, Nancy (R), District 34

Jennings, J. B. (R), District 7

Kittleman, Allan H. (R), District 9

Pipkin, E. J. (R), District 36

Reilly, Edward R. (R), District 33

Shank, Christopher B. (R), District 2

Simonaire, Bryan W. (R), District 31

Absent

Klausemeier, Kathy (D), District 8

Proposed Income Tax Changes for Individual Filers

For those individuals with an adjusted gross income between $100,000 and $125,000, the income tax rate increases from 4.75% to 5%.

For incomes between $125,000 and $150,000, the income tax rate increases from 4.75% to 5.25%

For incomes between $150,000 and $250,000, the income tax rate increases from 5% to 5.5%.

For incomes $250,000 to $500,000, the income tax rate increases from 5% to 5.75%.

For incomes above $500,000, the income tax rate increases from 5.5% to 5.75%.

Proposed Income Tax Changes for Households

For those households with an adjusted gross income between $150,000 and $175,000, the income tax rate increases from 4.75% to 5%.

For incomes between $175,000 and $225,000, the income tax rate increases from 4.75% to 5.25%.

For incomes between $225,000 and $300,000, the income tax rate increases from 5% to 5.5%.

For incomes between $300,000 and $500,000, the income tax increase increases from 5% to 5.75%.

For incomes above $500,000, the income tax rate increases from 5.5% to 5.75%.